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R&D investment grows
Businesses in the UK spent £23.7 billion on research and development (R&D) in 2017, according to the latest data from the Office for National Statistics (ONS). The ONS found that year-on-year expenditure on R&D increased by £1.1bn – or 4.9% – compared to statistics for 2016. Firms in the pharmaceutical sector continued to have the…
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The apprenticeship levy – your understanding so far
Businesses are finally beginning to understand the apprenticeship levy, after previously voicing serious concerns over its complexity and lack of flexibility. The apprenticeship levy took effect on 6 April 2017 and means businesses with an annual pay bill of more than £3 million must pay the levy towards apprenticeship funding. It is charged at 0.5%…
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Filing self-assessment 2017/18 – what you need to know
As the year draws to a close, the thought of your tax return is there, at the back of your mind. But with so much time before the deadline, you decide not to worry about it for now. Then the weeks start to fly by, Christmas comes and goes, and soon you’re planning for…
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Have you made a will?
Most people don’t like to think about their own mortality, but planning for the future is important to ensure your property, money and possessions are distributed the way you intend. Writing a legally valid will is an essential part of this, and can provide peace of mind for you and your loved ones. Despite this,…
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National Insurance and the higher rate taxpayer
Individuals set to benefit from an increase to the higher-rate threshold in 2019 will only see half of the tax reduction expected, as a result of a Budget measure not mentioned in the Chancellor’s speech. In Budget 2018, the Chancellor announced that the higher-rate income tax threshold would increase from £46,350 to £50,000 in 2019/20.…
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IR35 pitfalls and current views
Contractors could face a higher tax bill from April 2020 when reforms to IR35 legislation are set to take effect in the private sector. This is expected to raise more than £3 billion between 2020 and 2024, as self-employed individuals who fall within the rules, and the businesses engaging them, will face a higher tax…
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Small retailers business rates lowered
Small retail businesses in England will see a reduction to their business rates, as announced in Budget 2018. Business rates will be reduced by a third for many retail properties with a rateable value below £51,000 for two years from April 2019, subject to state aid limits. The Chancellor said this will mean “an annual…
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Annual investment allowance to rise to £1m
The annual investment allowance is set to temporarily increase from £200,000 to £1 million, allowing businesses to gain more tax relief on their investments. This will take effect from 1 January 2019 and remain in place until 31 December 2020, after which it is due to revert back to £200,000. Using the annual investment allowance,…
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Deregistering for VAT
When and how to begin the process of deregistration. These days VAT thresholds are the subject of much speculation, with the Government concerned that many business owners deliberately choose to stay below the VAT-registration threshold. Limiting your ambition in this way might seem counter-intuitive – surely you want your business to get as big as…
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Budget 2018: Tax and business round-up
At a time of political and economic uncertainty, the announcement of several substantial measures in the Budget on 29 October 2018 came as a surprise for many businesses. In fact, the Budget was met with an overall positive reception from industry groups, with the FSB calling it the Chancellor’s “first small-business-friendly Budget”. A range of…
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Government announces apprenticeship levy reforms
Chancellor Philip Hammond has announced a package of new measures to reform the under-fire apprenticeship levy. Under the revised rules, employers who pay the apprenticeship levy will be able to transfer a quarter of their funds to organisations in their supply chain, including smaller employers. Levy-paying businesses have been able to transfer up to 10%…
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Small firms not ready for Brexit
Small businesses are woefully unprepared should the Government deliver a no-deal Brexit, according to a report. The Federation of Small Businesses (FSB) surveyed 1,234 business owners, and found only 14% had contingency plans in place for the UK exiting the EU without arrangements having been agreed. The research revealed that 41% of UK SME owners…
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Most small businesses receive funding boost
The overwhelming majority of small businesses that applied for finance in the first six months of 2018 were successful, statistics show. UK Finance commissioned market research firm BDRC to carry out its SME Finance Monitor Q2 2018 and found 85% of small businesses in the UK secured finance in the first half of the year.…
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Pension planning in your business
How your pension savings can help finance your business. As traditional loans fall out of favour with increasing numbers of business owners, you may be looking for an alternative route for financing – and your pension could be the answer. Data from the British Business Bank shows that in 2017 the number of small businesses…
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Extracting profits from a business
What are the tax implications? People run businesses for a variety of reasons from passion to pride, but making a living is high up the list for most people. How do you go about drawing profit from your business, and doing so efficiently? If your business operates as a partnership or sole trader, the profits…
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Abolish IHT says think tank
A think tank is calling for inheritance tax to be abolished, as part of a set of proposals for major reform to the UK tax system. The Institute for Public Policy Research (IPPR) published its 10-part plan for economic reform, which includes replacing the system of inheritance tax with a new ‘lifetime gifts tax’. Under…
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Class 2 NI looks here to stay
Chancellor Philip Hammond has opted to scrap the planned abolition of class 2 national insurance contributions (NICs). The Government was originally due to abolish class 2 NICs for the self-employed from 6 April 2018, but the move was delayed for 12 months in November 2017 and has now been abandoned. The policy, which was first…
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Apprenticeships drop by 31% year on year
The number of people starting apprenticeships has dropped by 31% in the last 12 months, the Department for Education has claimed. In the academic year between August 2017 and May 2018 there were 315,900 apprenticeship starts, compared to 457,200 the same time the year before. Business groups including the British Chambers of Commerce (BCC) and…
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Chancellor mulls abolishing dividend allowance
The Treasury is reportedly considering abolishing the dividend allowance in Autumn Budget 2018. The Daily Telegraph claims Chancellor Philip Hammond has business owners, directors and shareholders in his sights to help fund a Government pledge to increase spending on the NHS. Hammond cut the dividend allowance from £5,000 to £2,000 in Spring Statement 2017, with…
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Residential property tax
How has devolution affected what tax you pay? First-time buyers in England, Northern Ireland – and for a short time in Wales – were the biggest winners in the most recent shake-up to affect property taxes in Autumn Budget 2017. Philip Hammond’s headline measure was to abolish stamp duty for first-time buyers on homes worth…
